'Good deal for everybody': Trump announces 'biggest-ever' EU trade deal
What's the story
United States President Donald Trump and European Commission President Ursula von der Leyen have reached a trade agreement. The announcement was made after a meeting at Trump's Turnberry golf resort in Scotland. The deal, which comes just ahead of the August 1 tariff deadline, is said to include a 15% baseline tariff on most EU goods entering the US.
Agreement praise
Both leaders hail the agreement
Both leaders have hailed the agreement as a win for both sides. Trump said, "We have reached a deal. It's a good deal for everybody." Von der Leyen also called it "a good deal" for Europe. The pact is expected to include several key components, such as EU purchases of US military equipment, $750 billion in US energy purchases by the EU, and $600 billion in US investments from the EU.
Von der
Acquisitions to occur over 3-year period
Von der Leyen stated that the "significant" acquisitions of US liquefied natural gas, oil, and nuclear fuels will occur over a three-year period. She further stated that bilateral tariff exclusions had been agreed upon for a variety of "strategic products," including aircraft, certain chemicals, some agricultural products, and essential raw minerals. Von der Leyen stated that the EU aimed to achieve more so-called "zero-for-zero" deals, particularly for alcohol, which she hoped would be "sorted out" in the coming days.
Countermeasures avoided
Deal avoids trade sanctions, possible European countermeasures
The deal comes after intense negotiations to avoid an across-the-board US levy of 30 percent on European goods and possible European countermeasures that could have led to global economic turmoil. Without an agreement, the EU was preparing countertariffs on $109 billion worth of American goods. The specifics of whether sector-specific levies will be lifted or included in the baseline 15% tariff remain unclear.
Trade agreements
Fifth trade agreement this term
The EU deal is the fifth trade agreement signed by the Trump administration this term, following pacts with Britain, Japan, Indonesia, and Vietnam. A deal with India is still pending. German politician Friedrich Merz welcomed the trade deal, saying it preserved fundamental interests despite wishing for more relief in transatlantic trade.